Yields Touch Multi-Years Low Amid Increasing Possibility of No Deal

  • Jul 29, 2019 BST
  • Team Kalkine
Yields Touch Multi-Years Low Amid Increasing Possibility of No Deal

Global Markets: Equity Indices in the United States were trading in mix amid technology stocks dragged at the Wallstreet, the broader index S&P 500 fell off 5.74 points or 0.20% and quoting at 3,019.87, meanwhile the Dow Jones Industrial Average Index added 47.26 points or 0.17% in day’s session and trading at 27,239.71 and the technology benchmark index Nasdaq Composite slumped 59.10 points or 0.71% against the previous day closing and quoting at 8,271.62 respectively, at the time of writing.

Global News: The Fed policy meeting will conclude on Wednesday and, for the first time since 2008, central bankers are expected to lower borrowing costs, with the market expecting a quarter-percentage-point interest rate cut. Markets would also look out for whether the future rate cut would be limited, or the central bank would take a more accommodative stance. For the first in-person talks since the truce last month, the US and Chinese trade negotiators will shift to Shanghai to reach a deal, though expectations for progress during the two-day meeting are low. Amid global economic uncertainty, Treasury yields followed its counterparts and declined on Monday.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 137.55 points or 1.82% higher at 7,686.61, the FTSE 250 index snapped 28.76 points or 0.14% higher at 19,886.70, and the FTSE All-Share Index ended 62.09 points or 1.51% higher at 4,186.17 respectively. Another European equity benchmark index STOXX 600 ended at 390.85, up by 0.12 points or 0.03 per cent.

European News: After Prime Minister Boris Johnson stated, Britain would leave on 31 October without a deal unless the European Union renegotiated and said the Brexit divorce was dead, the pound fell to a 28-month low on Monday as investors worry no-deal Brexit would send shock waves through the global economy. Britain told Iran that it needs to follow the rules-based system of the international community in order to be treated as a responsible member of the intentional community, urging Iran to release a British oil tanker seized by its forces. As the PM and senior ministers intensified their support to leave the EU without a transition deal, the yield on 10-year British bond fell to its lowest level in almost three years, and the two-year yields dropped to their lowest since December 2017.

London Stock Exchange (LSE)

Top Performers Stocks: JE. (JUST EAT PLC), LSE (LONDON STOCK EXCHANGE GROUP PLC), and TBCG (TBC BANK GROUP PLC) rose by 22.72 per cent, 15.34 per cent and 11.27 per cent respectively.

Top Laggards Stocks: SNN (SANNE GROUP PLC), ALM (ALLIED MINDS PLC), and HMSO (HAMMERSON PLC) reduced by 33.78 per cent, 8.15 per cent and 7.21 per cent respectively.

FTSE 100 Index

FTSE100 Index Chart: 5-days Price Performance (as on July-29-2019), after the market closed. (Source: Thomson Reuters)

Top Risers Stocks: JE. (JUST EAT PLC), LSE (LONDON STOCK EXCHANGE GROUP PLC) and VOD (VODAFONE GROUP PLC) climbed by 22.72 per cent, 15.34 per cent and 4.27 per cent respectively.

Top Fallers Stocks: SMDS (SMITH (DS) PLC), SGE (SAGE GROUP PLC) and BNZL (BUNZL PLC) declined by 1.68 per cent, 0.92 per cent and 0.60 per cent respectively.


Top Risers Sectors: Technology (+3.57%), Telecommunications Services (+3.33%) and Healthcare (+3.24%).

Foreign Exchange and Fixed Income

FX Rates*: GBP/USD and EUR/GBP were trading at 1.2220 and 0.9117 respectively.

10-Year Bond Yields*: US 10Y Treasury and UK 10Y Bond yields were exchanging at 2.058% and 0.645% respectively. 

*At the time of writing

With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities. 

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